Soft jobs report kills rate-hike fears — crypto whales are already front-running the rebound
June's jobs report came in at roughly half the expected number, which scuttles the threat of an interest rate hike. At the same time, large crypto investors bought nearly $17 billion worth of bitcoin over two weeks while mainstream funds were selling, and now those mainstream funds just snapped a 10-day selling streak with a massive $222 million buying day.
Idea
The June jobs report was so weak (only 57,000 new jobs added vs. 115,000 expected) that investors no longer fear the Federal Reserve will raise interest rates. Lower-for-longer rates are historically bullish for risky, growth-oriented assets like crypto. Meanwhile, massive crypto 'whales' were already buying the dip to the tune of $16.7 billion over the last two weeks, setting a price floor. Now, mainstream bitcoin investment funds have finally joined the party, breaking a 10-day losing streak with a huge $222 million influx. Connecting the macro pivot with the underlying demand strength gives us a high-conviction setup for crypto to keep climbing.